the influence of promotional products on consumer behavior

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THE INFLUENCE OF PROMOTIONAL
PRODUCTS ON CONSUMER BEHAVIOR
CONDUCTED BY RELEVANT INSIGHTS • NOVEMBER 2012
Table of Contents
Methodology
3
Key Findings
5
Detailed Findings
8
Recall of Promotional Products
9
Usage of Promotional Products
13
Relationship with Advertiser & Business Impact
20
Demographics
25
1
Methodology
The PPAI Ad recall study was first conducted in 1992 with the goal of understanding how
promotional products are used to support PPAI’s members in their business growth efforts.
The study was repeated again in 1999, 2004, and 2012. The results from the latter
installment of this research are reported here.
  Approach
For the 2012 study, conducted November 13 - 27, 2012, data was obtained by intercept
interviews with adult travelers at La Guardia Airport, N.Y. The main screening criteria to
qualify into the study was the requirement of being in possession of (on their person, at
home, at work or in the car/truck) at least one promotional product that they have received in
the past 12 months. A verbal and visual description of representative promotional products
was presented to respondents.
The survey, consisting of 22 questions, was programmed online and administered by
personal interviewers using electronic tablets.
The questions included in the survey are grouped in three major areas:
  Promotional Product Recall
•  Types of promotional products recalled
•  Number of promotional products recalled, up to four items
•  Recall of advertisers and their message
  Usage of Promotional Products
•  Number of promotional products owned
•  Why, for how long and where promotional products are kept
•  How often promotional products are used
  Relationship to Advertiser & Business Impact
•  How promotional product are received
• 
• 
• 
• 
Prior familiarity with advertiser
Perceived advertiser intention by being given promotional products
Impressions about advertisers after being given promotional products
Business conducted with advertisers after receiving promotional products
2
Methodology
Sample
A total of 679 travelers were approached at La Guardia Airport, N.Y. of which 500 qualified
for the survey. Travelers came from 35 states, but as expected a large proportion (37%)
came from New York State, given the airport’s location. A similar distribution was observed in
the 2004 study at the Dallas Fort Worth Airport, with 36% of the sample coming from Texas.
Other states with more representation in the sample in this study are Florida (10%), Illinois
(9%), Texas (6%), New Jersey (5%), Connecticut (4%) and North Carolina (4%). Overall,
these seven states (including N.Y.) represent nearly 75% of the total sample.
The sample includes 57% men and 43% women, and the majority are between 21 and 50
years old ( 73%).
Most respondents (78%) were employed (full-time, part-time or self-employed). The rest
included full-time students (11%), retirees (5%) and homemakers or unemployed (3%).
One in five respondents who were employed had a managerial position. The most common
business sectors represented in the sample are Marketing/Advertising/PR/DM (23%),
Financial Sector (9%), and Medical/Healthcare (9%). See Demographics sections for more
details.
3
Key Findings
Recall of Promotional Products
  Seven in 10 consumers recalled receiving at least one promotional product in the past 12
months. A similar finding was observed in previous studies. Among those who recalled
receiving promotional products, 70% recalled receiving two or more items.
  Recall of the advertiser and message behind the first promotional item recalled are very
high. While 88% recalled the advertiser from a promotional product received in the past
12 months, 71% recalled advertisers on a newspaper or magazine read a week before,
which speaks to the power of promotional products to support brand recall.
  Financial services, retailers, apparel brands and electronics manufacturers are the most
commonly recalled advertisers of promotional products. The most often recalled
promotional product categories include:
  Wearables (41%): Including Shirts (22%), Caps/Headwear (11%), Outerwear(6%)
Other Wearables (2%)
  Writing Instruments (35%)
  Drinkware (19%)
Main Takeaways
Promotional products have a high reach and potential for top-of-mind recall and are
an excellent medium to increase and sustain brand awareness
Unaided brand recall is a brand strength indicator as it depends on strength and
organization of memories and their accessibility. It is affected by:
  Interference of other product information
  Time since last exposure
  The number and type of external retrieval cues
Promotional products can be used to minimize time gaps in exposure occasions
and provide external cues to help brand recall. They should be provided on a
regular basis, have a clear connection to the brand, and should be relevant to the
consumer.
4
Key Findings
Usage of Promotional Products
  Eight in 10 consumers own between one and 10 promotional products, six in 10 keep
them for up to two years, and about half (53%) use a promo item at least once a week or
more often
  The main reason for keeping a promotional product is usefulness. Ranking higher in
usefulness are Computer Products (100%), Health & Safety Products (100%), and Writing
Instruments (91%)
  Sporting Goods/Leisure Products/Travel Accessories (24%), Housewares/Tools (21%) and
Wearables (23%) are more often kept because of their perceived attractiveness
  The top categories of promotional products kept because they can be used for contact
information reference are Buttons/Badges/Ribbons/Stickers/Magnets (33%), Electronic
Devices & Accessories (29%) and Computer Products (23%). However, promotional
products are not often used for contact information reference. Only 35% have ever used
promotional items for this purpose
  When it comes to frequency of use, Calendars/Planners (85%), Computer Products (85%)
and Electronic Devices & Accessories (82%), take the top 3 spots
  Most promotional products are kept at home (54%) or on the person (24%). Promotional
products that are not worth keeping are either filed away and ignored (42%) or given to
someone else. Only one in 5 trashes non-wanted promotional products.
Main takeaways
Promotional products are often present and used in consumers’ daily life. By
providing useful promotional products (not only as references for contact
information) that can be integrated in consumers’ life in an organic way, advertisers
can increase their reach and potential for creating and maintaining brand awareness.
Promotional products should be thought as “gifts for family and friends” to extend
their relevancy beyond target users to facilitate passing them to others and thus
increasing their reach.
5
Key Findings
Relationship with Advertiser & Business Impact
  Nearly six in 10 consumers received promotional products from a business establishment or
at trade shows, conferences or conventions.
  Consumers were well aware of the advertisers’ intentions: to advertise or promote a product,
a business or a cause (55%). Promotional products are also given away to thank consumers
for their business (16%) or to directly drive sales as purchase incentives (10%).
  Most consumers (88%) were familiar with the advertiser before receiving promotional items.
Advertisers were able to cause the most favorable impression among consumers who were
familiar with them. However, regardless of awareness, promotional products had a positive
impact on impressions about the advertisers.
  Before receiving the promotional products, about half of the consumers had done business
with the advertiser (55%). After receiving the promotional products, 85% did business with
the advertiser.
  Advertisers were also able to increase their business even among those who hadn’t done
any business with them before (11%).
Main Takeaways
It is undeniable that promotional products have a positive impact on attitudes and
behavior. The use of promotional products has a strong correlation with both
customer acquisition and retention. Advertisers should use this medium in a strategic
way to foment loyalty, create awareness and increase new trials.
Advertisers and promotional products distributors should monitor cultural and socioeconomic trends to be able to anticipate which items could be more appealing, useful
and easily integrated in consumers’ daily lives. Such items would create and support
favorable impressions about the advertisers and provide cues for brand recall when
purchasing decisions are made.
6
Detailed Findings
7
Recall of Promotional Products
8
How many have received promo
products?
73% of consumers have received
promotional products in the past 12
months
This finding is similar to that of other studies conducted by PPAI in past years: 2004= 71%, 1999= 72%,
1992= 62%
How many promo items are recalled?
30% recalled only 1 promo item
38% recalled 2 promo items
20% recalled 3 promo items
12% recalled 4 promo items
9
What is recalled about promo items
received in the past 12 months?
88% recalled the advertiser
62% recalled the message
71% of
those who
read a
newspaper or
magazine a
week before
recalled an
advertiser
Most frequently recalled advertisers
14% Financial Services
9%
Retailers
6%
Apparel Brands
5%
Electronics Manufacturers
10
Which promo items received in past 12
months are recalled?
41%
Wearables
35%
Writing Instruments
Drinkware
19%
Sporting Goods/Leisure Products/Travel
Accessories
15%
Personal/Pocket-Purse Products
13%
Bags
13%
Recognition Awards/Jewelry/Clocks/Watches/
Key Chains
12%
Desk/Office/Business Accessories
12%
Housewares/Tools
11%
Food Gifts
7%
Electronic Devices & Accessories
6%
Calendars/Planners
5%
Computer Products
5%
Health & Safety Products
5%
Buttons/Badges/Ribbons/Stickers/Magnets
Other
2%
10%
Respondents were asked to recall up to 4 promotional items received in the past 12 months
11
Usage of Promotional Products
12
How many promo products are owned?
58%
1-5
11 - 15
82%
24%
6 - 10
8%
16 - 20
4%
More than 20
6%
own
1 to 10 promo
products
Why are promo products kept?
Usefulness is the most common
reason to keep a promotional item
81%
Useful
14%
Attractive
12%
Reference for contact information
Quality, valuable item, collectible
5%
Has sentimental value
2%
Other
3%
13
Why are promo products kept?
Top 3 Most Useful Categories
100%
Computer Products
100%
Health & Safety Products
91%
Writing Instruments
Top 3 Categories Kept Because of
Attractiveness
24%
Sporting Goods/Leisure Products/Travel
Accessories
21%
Housewares/Tools
19%
Wearables
Top 3 Categories Kept Because of
Contact Information Reference
33% Buttons/Badges/Ribbons/Stickers/Magnets
29% Electronic Devices & Accessories
23% Computer Products
14
Why are promo items kept?
All Categories
Useful
Contact Info
Reference
Attractive
Computer Products
100%
Health & Safety Products
100%
Writing Instruments
91%
Bags
91%
15%
0%
0%
9%
5%
6%
13%
Food Gifts
90%
Personal/Pocket-Purse Products
86%
Calendars/Planners
85%
Housewares/Tools
83%
21%
Sporting Goods/Leisure Products/Travel
Accessories
82%
24%
Desk/Office/Business Accessories
82%
18%
Wearables
82%
19%
Drinkware
80%
Jewelry/Clocks/Watches/Key Chains
77%
Electronic Devices & Accessories
Buttons/Badges/Ribbons/Stickers/
Magnets
71%
56%
23%
10%
20%
18%
0%
18%
15%
8%
13%
18%
21%
18%
18%
6%
10%
13%
29%
11%
33%
15
Respondents were asked to evaluate the first promo item they recalled
How often are promo products used?
29%
24%
17%
10%
7%
Several
At least
At least
times a day once a day once a
week
53%use
13%
At least
At least
once a once in six
month months or
once in the
past
Never
promotional
products once a
week or more
often
Used once a week or more…
Top 3 Categories
Recalled
Writing Instruments
Top 3 Categories Most
Frequently Used
85%
60%
Calendars/Planners
38%
85%
Computer Products
Wearables
50%
Drinkware
82%
Electronic Devices
& Accessories
16
How often are promo products used for
contact information?
65%
1%
1%
Several
times
a day
At least
once
a day
11%
13%
At least
once
a week
At least
once
a month
8%
At least
once in six
months or once
in the past
Never
35%
Have ever
referred to
promotional
products for
contact
information
Categories Often Used for Contact
Information Reference*
65% Electronic Devices & Accessories
57% Jewelry/Clocks/Watches/Key Chains
54% Computer Products
17
*At least once in the past or more often
For how long are promo products kept?
47% keep promo products
for more than a year
Time Among Those Keeping Promo Products
for Up to 2 Years
23%
For
about a
month
29%
16%
For about
six
months
18%
13%
7 to 12
months
For more
than a
year
At least
two years
40% say it
depends on the product
18
Where are promo products kept?
54%
Home
24%
On person
11%
Work office outside the home
Car
Home office
5%
3%
Other
1%
Don't know
2%
1 in 4 walk
around with
promo products
on or with
themselves
What happens to items not worth keeping?
42%
36%
21%
Trashed
Filed away
& ignored
Many discarded
items continue to
promote when given
to someone else
Given to
someone else
19
Relationship with Advertiser &
Business Impact
20
Where are promo products received?
At a business establishment
33%
Tradeshow/conference/convention
15%
By mail
12%
At work from employer
10%
Sport event /show/fair/charity/fundraising event
10%
From a salesperson making a call
9%
Retailer/service provider
6%
Other
2%
58%
receive promo
products at
business
establishments
or events
What was the advertiser’s intention?
Advertise, promote product, business
55%
Thank you for my business
16%
Give a purchase incentive
Reward employees/Company celebration
10%
4%
Apologize for bad service
1%
Increase awareness of health issues
1%
Other
Don't know
65% are
aware that promo
products are used
for advertising and
to motivate
purchases
5%
8%
21
Impact on perceptions about advertiser
88% were familiar with the advertiser before
receiving a promotional item
Impression of Advertisers After Receiving
Promo Items
59% had a more favorable impression of the
advertiser after receiving a promotional item
22%
37%
Significantly
More Favorable
Somewhat
More Favorable
37%
Neutral
1%
0.4%
Significantly
Somewhat
Less Favorable Less Favorable
22
Impact on perceptions about advertiser
Impression of Advertisers After Receiving
Promo Items
Promotional products improve the impression of the
advertiser among both familiar and unfamiliar consumers
88%
Familiar with Advertiser
BEFORE receiving
promo item
NOT Familiar with
Advertiser BEFORE
receiving promo item
of
these
of
these
23%
Significantly
More Favorable
60%
12%
37%
10%
Significantly
More Favorable
40%
Somewhat
More Favorable
Somewhat
More Favorable
36%
38%
Neutral
Neutral
50%
23
Business Impact
55%
45%
Had done business
with the advertiser
BEFORE receiving
promo item
Had NOT done
business with the
advertiser BEFORE
receiving promo item
of
these
of
these
85%
11%
Have done business
with the advertiser
AFTER receiving
promo item
Have done business
with the advertiser
AFTER receiving
promo item
Promotional products have a positive correlation
with customer retention and acquisition
24
Demographics
25
Demographics
Gender
43%
Age
57%
41%
21-35
33%
36-50
19%
51-65
Women
Men
Over 65
7%
Employment
Employed full-time or
part-time
Full-time student
Self-employed
Retired
Homemaker/Housewife/
Househusband
70%
8%
11%
2%
5%
Not currently employed
1%
Prefer not to say
2%
Base: All Respondents=500
26
Demographics
Business Sector
Media, Advertising, Marketing, DM, Sales
Promotion, Design, PR
23%
Financial Services/Insurance
9%
Medical/Healthcare
9%
Retail
5%
Communication
5%
Entertainment, Film, Music, Museums,
Theme Parks
5%
Food/Beverage Establishment
4%
Legal Services, Accounting
4%
Charities/Associations/Action Groups
3%
Real Estate
2%
Transportation
2%
Construction/Contractor
2%
Government
2%
Property/Building Management
1%
Other
1%
Prefer not to say
3%
27
Base: Full-time, part-time or self-employed=440
Demographics
Job Titles
Manager/Surpervisor/Director/Senior Level
Management (CMO, COO, CFO, VP, Senior VP, etc.)
19%
8%
Consultant
Banker/Broker/Financial Advisor/Rep/Manager
5%
Physician/ Dentist/Nurses (LPN/RN/Charge Nurse)
5%
Owner/CEO/President/Principal/Entrepreneur
4%
Specialist
4%
Mechanic/Welder/Technician/Installer
4%
Sales Representative/Sales Staff
4%
3%
Attorney/Paralegal
3%
Engineer
Analyst
2%
Secretary/Administrative Assistant
2%
Agent (travel, insurance, etc.)
2%
Builder/Contractor/Construction Worker
1%
Buyer/Purchasing Buyer
1%
Trainer
1%
Driver/Chauffeurs/Truck Drivers
1%
Counselor
1%
21%
Other
Prefer not to say
Base: Full-time, part-time or self-employed=440
9%
28
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